The first study for the treatment of chronic myelocytic leukemia is designed to determine whether or not more intensive treatment directed against the presumed abnormal myeloblasts can postpone or prevent myeloblastic transformation. The second study is designed to assess the effectiveness of anthracycline antineoplastic therapy in the induction treatment of the transformation phase of chronic myelocytic leukemia once it does develop. The objective of the first study is to determine whether CCNU and Ara-C begun at the time of diagnosis of CML without busulfan can postpone or prevent myeloblastic transformation while the objectives of the second study are to assess the effectiveness of the addition of daunorubicin to hydroxyurea, 6-mercaptopurine and prednisone as induction treatment of the blastic or "resistant" phase of CML. In the first study, patients are randomized to control treatment with busulfan followed by continuous "maintenance" busulfan. CCNU and Ara-C given every six weeks starting at the time of entry into the study. In the second study patients are randomly assigned to one of two treatment programs designed to compare the relative effectiveness of daunorubicin, hydroxyurea, 6-mercaptopurine and prednisone with or without the addition of MER immunotherapy. As of June, 1977, 12 patients have been entered into these two studies. It is too early to evaluate response and survival rates.